Walmart's New Strategy

Essay text:

This strategy called for broad systemic changes in hopes of encouraging and achieving sustainability. This paper contains the following three parts: Part I. Analysis of Wal-Mart's strategy, Part II. Planning Process for IT at Wal-Mart, and Part III. Conclusion. PART I: ANALYSIS OF WAL-MART'S STRATEGY SWOT Analysis Strengths ? Strong name recognition and customer base ? Largest retailer in the world ? High ability to have an impact socially and economically ? Pioneering abilities and experience ? Largest employer in the world ? Among the highest for net sales in the world ? Has maintained an aggressive growth strategy adding new stores at a high rate ? Global presence Weaknesses ? The source of public criticism over low wages, poor health care, killing the small town, discrimination, and violating child labor laws ? Price deflation because of purchasing a high quantity of items and having to sell at reduced cost (overstocking) ? Too many stores too close together ? High employee turnover rate ? Do not attract higher income customers ? History of making promises it can't keep in regards to earnings ? So many suppliers they are hard to track Opportunities ? Because of company size and world infiltration, efforts supported can be accomplished ? No strong presence in many parts of Europe ? Room to increase efficiency of energy in both trucks and stores ? Reduction of emissions and solid waste ? Provision of affordable health care for all ? Wage improvements ? Affordable and convenient health care for all Threats ? Other low price vendors such as dollar stores can cause problems for Wal-Mart's ability to keep customers ? The lasting effects of the war in Iraq ? Strong pursuit of innovative technologies can cause suppliers angst and eventual inability to meet standards further alienating customer base ? Spreading self too thin to provide quality services Ansoff's Analysis Current Products New Products Current Markets ? Promote current sustainable resources available to customers ? Maintain customer base by offering shorter lines, lower prices, and accessible locations ? Open more Wal-Mart clinics to reach more people ? Encourage diversity ? Pay employees sustainable minimum wages ? Encourage sustainable suppliers New Markets ? Add more and more products that are sustainable and offer them at affordable prices ? Make truck fleet more efficient ? Make stores and clubs more efficient by providing less solid waste ? Expand RFID technology ? Open stores in more outside countries ? Expand "Green" initiative into website ? Partner with businesses to provide healthcare affordable for all ? Pursue regulatory and policy changes that promote energy efficiency and renewable energy ? Establish a program that gives suppliers preference for aggressively reducing emissions...